As businesses accelerate AI adoption, new research reveals a growing leadership gap, with only half of Australian workers confident their leaders are equipped to navigate the shift.
According to research commissioned by COS (Complete Office Supplies) – Australia’s largest family-owned office supplies business – only half (50%) of employees believe their current leadership team has the right skills to lead in a future shaped by automation and artificial intelligence.
The study of more than 1,000 Australian workers revealed a sharp divide in perceptions. While some employees credit their leaders for embracing innovation and experimenting with new systems, just as many feel there is no clear strategy or communication around AI. In fact, a third of employees who lack confidence in their leaders pointed to limited training and development, and another third said their executives were too slow to adapt to change.
Delving deeper into the data, Northern Territory and Tasmania ranked higher in employees who trusted their current organisational leaders to take them into this new era, compared to New South Wales and Victoria who had the lowest levels of confidence (83% and 63% compared to 49% and 43% respectively). The IT & Telecommunications, and Finance, sectors had the highest levels of confidence (67% and 58%) compared to employees within the Travel & Transport and Health industries (39% and 44% respectively).
On the findings, Co-CEO of COS, Belinda Lyone, says “AI is evolving faster than any of us can fully grasp, and the reality is that no one can claim to be a true expert yet or fully understand the future impact. One of the most powerful steps leaders can take is to bring people together, from strategists to emerging experts and curious thinkers, to openly explore how AI could shape their business. Creating these forums accelerates learning, uncovers opportunities, and helps employees feel part of the journey rather than bystanders to change.“
“These findings highlight how Australian workers want clarity and proactive leadership. Ultimately, uncertainty creates anxiety, so when leadership fails to communicate a vision for how AI will be integrated, employees can feel left behind or undervalued. This isn’t just a technology challenge; it’s a cultural one. Businesses need to actively bring their people along on the journey.”
At COS, investment in leadership and staff development has been a central part of the company’s growth from a small Sydney business in 1977 to a $300 million national operation with over 700 staff and warehouses across every state and territory.
Key initiatives they have implemented to help leaders lead effectively include:
- Learning and Development Budget: Every employee has access to an L&D budget that they can choose how to invest, provided it supports their current role or future growth within the business. Over the past 12 months, many employees have chosen to use their investment to expand their digital capability, including completing AI programs designed to strengthen skills for the future.
- Company-led Programs: In addition to individual learning, COS delivers tailored programs that bring groups of employees together to upskill and collaborate on shared topics and emerging opportunities. These sessions promote collaboration, encourage innovation, and contribute to a common language and joint vision across the business. Many of these programs evolve into ongoing working groups that explore, test, and develop new ideas to help COS grow and adapt.
“Upskilling is not a one-off exercise,” says Lyone. “It’s an ongoing commitment. By supporting our team through structured learning pathways, we are equipping them with the critical thinking, adaptability, and leadership skills needed to navigate uncertainty. This gives our people confidence that they will remain relevant in an AI-driven future.”
The bigger picture: employee engagement and productivity
The findings also highlight a growing expectation from Australian workers that businesses must take a proactive approach to leadership development.
“As leaders, our role is not to have all the answers on AI but to create an environment where learning and experimentation are encouraged,” Lyone says. “Employees who see their leaders investing in knowledge and skills are more likely to feel motivated, secure, and committed to the organisation’s long-term vision.”
The path forward
COS believes that businesses can take several practical steps to ensure their leadership teams are prepared:
- Embed continuous learning into culture: treat leadership training and digital upskilling as ongoing investments, not one-off projects.
- Encourage cross-functional experimentation: create opportunities for teams to trial new tools and share learnings.
- Balance technology with human skills: prioritise adaptability, emotional intelligence, and communication alongside technical training.
“Automation and AI doesn’t have to be about replacing people, but about enabling them to work smarter,” concludes Lyone. “The companies that will thrive are those whose leaders show the courage to learn, the humility to admit what they don’t know, and the foresight to prepare their teams for the new era we are entering.”
For more information on COS, visit: https://www.cos.net.au/
About us:
COS is Australia’s largest family-owned and operated workplace supplies business, led by second-generation sisters, Co-CEOs Belinda and Amie Lyone. Founded in 1977 by the late Dominique Lyone, COS began as a small business with a vision for exceptional service and social responsibility. Over the past 45 years, COS has grown from a small business to a national operation with over 700 staff and warehouses in every state and territory. Every day, we deliver thousands of products to workplaces, schools, and hospitals across Australia, helping to keep them healthy, safe, and productive.
COS is proud to share that from January to June 2024, the company successfully achieved two major sustainability milestones: Net Zero Operations and 100% Renewable Electricity across all their facilities nationwide. While the company celebrate this progress, COS remains focused on maintaining and building upon these achievements for the long term. COS is also committed to giving back. Each year donating 1% of annual revenue to the Lyone Foundation, supporting local Australian charities focused on human welfare. Since 2013, COS contributed over $23M to the Lyone Foundation and helped more than 130 life-changing charities.
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